Kodak said they are examining the possibility of selling their digital patent portfolio. That is, considering that recently "patents" were exchanged, apparently, at very good prices, it might be a good moment to sell them if a buyer is found for a good price.

The "strategy" is probably to secure the uncertain earning stream that patent litigation is bringing to Kodak in the last years, and use that money, presumably, to gain time to demonstrate the "business case" that the management is bringing forward. Of this business case, the printing technology (expensive, yet superior in quality) is not going to take the market until the present economic condition persists, so Kodak has to "buy time", has to survive this long night hoping in a new dawn, and selling patents might give them a definite amount of time to show that Kodak can find a new stream of revenues and profits.

Normally the market (market analysts to say better) would analyse the firm circumstances and, if there is merit in their proposal, they would "buy" into the proposition and bet on future success. At the moment, the market does not seem very convinced. At the moment, though, the market does not seem very convinced of ANY business proposition, for various reasons. Kodak is sinking because the market is sinking.

Selling the patents can be seen as a way to "buy time", or as a desperate move to keep the nose above water level beyond what the current finance levels would allow (which is probably some years in any case).

The degree of "desperation", or "business acumen" at Kodak can be judged only if a sale actually takes place and only after having considered its price. If the price is "good", the move is wise: an uncertainty factor is eliminated and Kodak can survive for a longer time and have more probabilities to reach a new spring.

If the price is "not good" than this can be seen as firing the last cartridge and Kodak will be valued, by the market, solely on the merit of its normal, "operating" activity.

I'll begin worrying when and if a sale is carried on at a "not good" price.